FSN E-Commerce Q2 FY27 Results (NSE: NYKAA)
Signal: Margin expansion
The read
The trajectory remains a margin-led earnings acceleration: consolidated revenue grew 28.1% YoY and EBITDA margin expanded roughly 196bps to 8.7%, with Beauty contributing ₹180.19 Cr of segment result; however, Fashion remains at a ₹7.65 Cr loss and negative H1 operating cash flow of ₹28.56 Cr alongside inventory of ₹2,209.66 Cr are the key quality checks.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,006.04 Cr | +28.1% | +8.1% |
| Net profit | ₹101.19 Cr | +206.8% | |
| EPS | ₹0.35 | +191.7% | |
| EBIT margin | 8.7% |
P&L walk
Revenue accelerated to ₹3,006.04 Cr, +28.1% YoY and +8.1% QoQ; gross margin expanded modestly to 46.0%, EBITDA margin rose to 8.7% on operating leverage, finance cost fell 3.0% YoY, and PAT increased to ₹101.19 Cr from ₹32.98 Cr.
Segments
Beauty drove the group with ₹2,699.74 Cr revenue, +26.6% YoY, and ₹180.19 Cr segment result, +71.0% YoY; Fashion grew faster at +43.0% but remained loss-making at -₹7.65 Cr, while Others lost ₹10.70 Cr.
Key positives
- Consolidated revenue rose to ₹3,006.04 Cr, +28.1% YoY and +8.1% QoQ, accelerating from +26.7% YoY in Q3FY26.
- Derived EBITDA grew approximately 65.2% YoY versus revenue growth of 28.1%, a +37.1pp gap; employee cost grew 20.4%, depreciation 17.7% and finance cost declined 3.0%, while EBITDA margin expanded roughly 196bps to 8.7%.
- Beauty segment result increased 71.0% YoY to ₹180.19 Cr on 26.6% revenue growth, providing the main earnings engine.
- Fashion revenue grew 43.0% YoY to ₹287.24 Cr and its loss narrowed to ₹7.65 Cr from ₹21.35 Cr, although profitability has not yet been reached.
Key concerns
- H1 operating cash flow was negative at ₹28.56 Cr versus positive ₹129.29 Cr a year earlier, mainly reflecting a ₹564.74 Cr inventory build and a ₹192.45 Cr increase in other current assets.
- Consolidated borrowings increased to ₹990.65 Cr from ₹747.21 Cr at March 31, 2026, taking borrowings net of cash and bank balances to ₹641.82 Cr from ₹427.18 Cr.
- Fashion remains loss-making at -₹7.65 Cr and Others remained loss-making at -₹10.70 Cr despite consolidated PAT reaching ₹101.19 Cr.
- Standalone PAT of ₹16.71 Cr was supported by ₹51.02 Cr of other income against ₹103.61 Cr of operating revenue, so parent-level earnings are not an operating proxy for the group.
Research and educational content only. Not investment advice.